The fundamental goal of the Research Training Program in Health and Mental Health Economics at the University of Wisconsin - Madison is to produce skilled economics with a broad knowledge of health and mental health areas, or economics more generally, and of state-of-the-art econometrics who will engage in high quality research in health and mental health economics. This program, located in a highly regarded department of economics, offers a unique opportunity to attract exceptionally bright and qualified students. Trainees can be expected to make major contributions to the study of the key policy issues in the mental health and health arenas, as faculty members who will undertake research and teach future health and mental health policy analysts or a research/analysts in the private or public sector. The program includes formal coursework in economic theory and econometrics, a set course in a major field, a formal course in health and mental health economics, a continuing weekly research seminar on mental health economics which provides trainees with the opportunity to participate in a mental health research project and supervised research under participating faculty members (which include, in this proposal, faculty from the Department of Psychiatry, Psychology, and Medicine). The seminar-based research program involves all steps in a project, including project design, literature review, formulation of hypothesis, empirical estimation using large data sets, writing a paper and formal presentation of the work. Critique of current literature in mental health economics as well as policy alternatives is also part of the program, as is exposure to some fundamental issues in the etiology and epidemiology of mental disorders. Trainees are encouraged to participate in professional conferences, to submit papers for publication, and to write and submit proposals to NIMH.